Papers get bigger share of HSPA ad sales

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Commission increases for members who sell into classified, 2×2 programs

Indiana newspapers can now pocket a larger percentage of the revenue from sales they make into HSPA’s classified advertising and display ad programs.

To encourage additional sales by member newspapers, the Hoosier State Press Association board of directors doubled the commission for sales into the two programs from 15 percent to 30 percent.

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The increase means a newspaper that sells a daily classified ad, which runs five times in a week, will now keep $177 of the $590 cost, double what the paper kept under the old arrangement.

If a newspaper sells into the Power of 2 display ad program, which offers 2×2 and 2×4 ads, it now will record a profit of $270 for a 2×2 and $540 for a 2×4.

In the past, HSPA member newspapers received a smaller share of revenue when they sold daily classifieds or Power of 2 ads compared to weekly classifieds, though the cost of those ads is greater than the weekly classified price, said Steve Key, HSPA executive director and general counsel.

“That created less of an incentive for publishers or ad directors to encourage sales staff to upsell clients into HSPA’s statewide programs,” Key said.

The advertising programs fund 80 percent of the HSPA’s annual budget.

The commission re­­mains the same for weekly classified ads, with newspapers keeping $150 for a classified ad that runs once in participating newspapers.

In a related matter, the HSPA board decided to maintain the policy of capturing the revenue from the three advertising programs to help rebuild reserves that were drained during 2010 when ad sales lagged.